The impacted borrowers are people enrolled in the SAVE Plan.

The impacted borrowers are people enrolled in the SAVE Plan.

The Biden administration will begin automatically relieving student debt for another 153,000 people on Wednesday, bringing the total number of Americans approved for debt relief to nearly 3.9 million.

President Joe Biden will tout the new debt relief in a speech from Los Angeles, and thousands of people will receive an email from the president informing them that they now qualify for relief.

“Congratulations — all or a portion of your federal student loans will be forgiven because you qualify for early loan forgiveness under my Administration’s SAVE Plan,” the email from the president will read.

The people receiving debt relief beginning Wednesday are those who enrolled in the newest student loan payment plan, called the SAVE Plan, which the Department of Education calls the most affordable plan for the majority of borrowers.

Anyone enrolled in the SAVE Plan who took out less than $12,000 in initial loans and has been paying them down for the past 10 years or more will have them forgiven.

  • Hildegarde@lemmy.world
    1·
    4 months ago

    The cost of forgiveness is not proportional to the value of the relief. $100k costs the same as $10k. The number he chose is arbitrary. It’s telling he picked a small one.

    • Flying Squid@lemmy.world
      11·
      4 months ago

      You must be quite wealthy if you think $10k is not a lot of money to be forgiven.

      Also, are your student loan debts really $100k? Because they’re around $30k-$40k for most people. I would say 1/3 to 1/4 of the way to being debt free is pretty damn good.